http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/bankruptcy_faqs/ http://www.debts.org/11/index/bankruptcy_faqs/#When:13:44:00Z Filing for bankruptcy depends on your individual situation and your personal circumstances. Some people simply file for bankruptcy in order to hold onto their assets (like their house or car), while those with no assets often file for bankruptcy because their financial situation necessitates it in order to stay out of emotional and financial distress.Bankruptcy is a better option for those whose debts are unsecured (such as credit cards) and whose debts amount to more than can be paid over five years. More... People also file for bankruptcy when being harassed by collection agencies at home or at work, and who are unable to pay taxes, generate savings, or avoid property repossession. If your wages are being garnished, bankruptcy is an extra help, because it stops garnishment (except for in cases of alimony, child support, or back tax payments).Here is a list of frequently asked questions concerning bankruptcy.Q. Do I have to pay my creditors if I go bankrupt?Yes. If you have any assets they may be sold with the proceeds going to the creditors – this includes house equity. Also, any amount from your income deemed as surplus to living expenses will be paid to your creditors.Q. When is bankruptcy a good idea? Filing for bankruptcy may help if your financial problems stem from a number of sources, such as unmanagable credit card debt, medical bills and out of spiralling mortgage payments. “If reducing or eliminating most of your other debts puts you in a position where you can pay your mortgage, then bankruptcy can be of help,” said Henry Sommer, president of the National Association of Consumer Bankruptcy Attorneys.Q. Is claiming bankruptcy free?No. One of several things that you cannot discharge in a bankruptcy is the fees it costs you to file. The actual filing fee is around $200, but you will probably need the services of a competent attorney (especially if you are filing Chapter 13), which can cost an additional $500 to $1000 for Chapter 7, or $1000 to $1500 for Chapter 13. The attorney’s fee, however, can be discharged during your bankruptcy, which is why your attorney will most likely ask for the entire fee up front.Q. Will any debts incurred after filing for bankruptcy be discharged?No, only debts at the time of filing bankruptcy can be discharged – any additional debts must be paid in full according to your terms of agreement.Q. How long is bankruptcy on my credit record?Chapter 7 bankruptcy will be on record with credit reference agencies for 10 years.  Chapter 13 bankruptcy will be on record with credit reference agencies for 7 years. Q. Will future lenders know about my bankruptcy history?Lenders will be made aware of your bankruptcy whenever they consider an application for a mortgage, loan or credit card etc.Q. Can I keep my bankruptcy secret?You will not be able to keep bankruptcy secret from credit reference agencies or lenders. It will also be a matter of public record so lying about bankruptcy is not recommended. Bear in mind bankruptcy is not a shameful matter and is quite literally an everyday occurrence.Make yourself at home in our Forum and find out what everyone else thinks about bankruptcy in America. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory. Bankruptcy FAQs 2008-07-04T13:44:00+00:00